"Of all debts," wrote Emerson, "men are least willing to pay the taxes." Government experts have for generations been trying to devise such a means of raising revenue that the burden will be divided justly among all classes and all individuals--and are continually failing. By levying upon corporations a flat tax of ten percent on profits--with certain exemptions--and applying a progressive tax rate up profit--with certain exemptions--and applying a progressive tax rate to profits which exceed a stipulated percentage of the capital investment the Government has attempted to levy a tax on surplus profits which would not be felt by industry. But this excess profits tax is not now suitable to business conditions.

The tax was introduced in 1916 to appropriate a part of the huge profits realized by American capital because of the European War. It at first encouraged extravagance on the part of corporations, who found it more profitable to expend their excessive income on advertising and "goes will" than to pay such high taxes. The inadequacy of the system lies in the fact that sufficient revenue cannot be realized from it now that war profits no longer exist.

The excess profits tax, although good in principle in that a aims at assessing income not stimulating to industry, falls down in practice because of the difficulties attending, its administration. In view of the fact that the stated capitalization of most corporations is largely a matter of accident, it follows that a just estimation of the actual return in excess of normal profit cannot in many cases be attained. The evaluation of the surplus income presents a problem no complex that even the Treasury Department can offer no general solution. The continual change in the personnel of that branch of the government leads to contradictory rulings and an irritating vacillation of policy.

The return of American industry to normal peace conditions entails a decrease of profits, and a corresponding reduction in the Federal income. The excess profits tax no longer capable of providing much revenue and almost impossible of just collection should be repealed immediately. With the expenditures of the current fiscal year not as yet provided for, Congress must find at once some other means of raising funds.